There is no doubt the cannabis business has been booming in Nevada since its legalization. Statista reveals that the total legal sales in the state grew by 30% from 2018 to 2021. In 2021 alone, the total sales hit a whopping $1 billion thanks to surging demand from both medical and recreational use markets. Las Vegas provides the most opportunities for the cannabis market in Nevada, thanks to favorable regulations and the ever-growing tourism industry that already attracts millions of out-of-state users.
This quick overview provides all the information you need about the Las Vegas cannabis industry in the year 2022.
Is cannabis legal in Las Vegas?
Absolutely! Nevada is one of few states (currently) that has licensed both medical and recreational dispensaries servicing different categories of consumers. In 2000, Nevada first voted to legalize medicinal cannabis. Then in 2016, the state voted to legalize adult-use cannabis, with the first adult dispensary opening in mid-2017. Today, anyone who is at least 21 or older can legally purchase cannabis in Las Vegas, regardless of medical status. The following are just a few things to remember about Nevada cannabis laws:
- Adults aged 21 or older can possess up to one ounce of cannabis flower or up to 3.5 grams of concentrates. Possession of cannabis greater than the allowed quantities are subject to criminal penalties.
- Adults can cultivate up to six cannabis plants at one time. You can possess all the harvests from these plants.
- Public use and display of any kind of cannabis products are prohibited. The public’s possession or use of cannabis attracts up to $600 in fines.
The economic impact of cannabis
There is not a single doubt cannabis has positively impacted the local economy in Southern Nevada, but Las Vegas especially. A recent report from RCG Economics predicts that legalized cannabis sales will pump $8 billion in direct, indirect, and induced economic benefits from 2018 through 2024. The following are the other notable statistics and projections:
- Employment: Companies in the cannabis industry employ thousands of people in traditional positions such as sales, finance, marketing, distribution, and much more. Experts projects cannabis industry will employ over 10,000 people just by 2024.
- Taxes: In 2019, taxes collected from Nevada recreational cannabis sales neared $100 million. Nevada is projected to collect more than $1 billion in cannabis taxes by 2024.
Who can grow cannabis in Las Vegas?
An exciting element of the Las Vegas cannabis market is the home cultivation model. This model allows for any adults of legal consumption age to grow cannabis in their own home if they live more than 25 miles from a dispensary. Nevada enacted these rules to make it easy for people in rural areas to properly access and enjoy their supply of cannabis.
The role of tourism in the Las Vegas cannabis market in 2022
The thriving tourism industry in Las Vegas has not only expanded, but help explode the market for cannabis in the city. Favorable adult use market regulations attract millions of out-of-state visitors each year, dramatically influencing cannabis sales. In 2019 alone, the city received over 42 million visitors who contributed upwards of 10 billion US dollars into the local economy. A big portion of these billions directly benefits adult use establishments in the city.
Obtaining a cannabis business license in Las Vegas
Getting your cannabis business license in Las Vegas, however, is not quite as exciting. Unlike other adult-use states like Colorado, Nevada has imposed a cap on the number of licenses available in the state, making it a bit more challenging to enter the lucrative cannabis market. The following are a few things to note about cannabis business license in Las Vegas:
Business license applications from medical and adult use facilities will only be accepted with proof of a state license from the Cannabis Compliance Board (CCB) and a valid Special Use Permit from the City Planning Department. If you are a cannabis production or cultivation establishment supplying a city-based cannabis establishment, you must get a business license approval from the relevant city council board. Additionally, anyone wishing to open a cannabis establishment should demonstrate the following:
- Provide proof you control $250,000.00 in liquid assets
- You have no prior convictions for certain felonies
- You must provide proof of all relevant fee payment
- Your entity’s physical address should be located 1000 feet from any school and 300 feet from any community establishment.
- Provide personal details of proposed establishment owners or officers. These may include name, address, date of birth, and complete set of fingerprints
- Proposed policies and procedures in tandem with the rule of the Department of Taxation.
- Provide evidence you own the proposed property where the business will be located. Alternatively, provide proof you have notarized permission from the landlord to operate a cannabis establishment on the premise.
Types of business licenses
There are a total of five types of cannabis business licenses in Las Vegas. These include cultivation facility, distributor, retail store, testing facility, and product manufacturing facility licenses. Both medical and recreational use markets offer these same licenses.
You can only apply for a cannabis business license during the 10-day “application period”. The application period is a short window provided by the Nevada Cannabis Compliance Board.
By law, the state must announce the dates it accepts applications. Once the application period closes, there is no other way one can legally apply to the state for a cannabis establishment license. However, it is worth noting the last time the board scheduled the application period was in 2018.
There are several fees associated with opening a cannabis business in Las Vegas, as with most other industries. The fees vary depending on the type of establishment you are opening:
- Dispensary licensing fees: these include a $5,000.00 nonrefundable application fee, a $30,000.00 initial licensing fee, and a $5,000.00 annual renewal fee.
- Cultivation facility licensing fees: $5,000.00 nonrefundable application fee, $3,000.00 initial licensing fee, and $1,000.00 annual renewal fee
- Edibles production facility licensing fees: $5,000.00 nonrefundable application fee, $3,000.00 initial licensing fee, and $1,000.00 renewal fee
- Independent testing laboratory licensing fees: $5,000.00 nonrefundable application fee, $5,000.00 initial licensing fee, and $3,000.00 annual renewal fee.
- Retail: an application fee for all applications is $5000
Las Vegas cannabis delivery and distributions
Las Vegas also has a thriving cannabis delivery and distribution industry throughout all of Southern Nevada. Typically, cannabis delivery and distribution operators are independent firms or services that don’t typically produce their own cannabis products.
These service providers act as stock clearinghouses for cannabis businesses and dispensaries. During the height of the Covid-19 pandemic, this industry recorded a colossal growth thanks to the huge increased demand for medicinal and recreational products. The operators provide a lot of convenience and safety in transporting to consumers needing to quarantine or self-isolate.
Get all your supplies from Las Vegas’ Largest Dispensary
There is no doubt the Las Vegas cannabis industry is truly one of a kind, just like the city that built it. Home to over 20 licensed dispensaries, Las Vegas enjoys a thriving recreational business that looks set to expand further. Since 2017, when it legalized recreational cannabis sales, Las Vegas has continued to attract millions of locals and tourists.
The City of Sin has also opened its doors wide to hundreds of recreational dispensaries and counting looking to cash in on the craze. Today, cannaseurs of all kinds have several options to obtain cannabis products in the city, including delivery, pick-up, or in-store purchases.
If you need a constant supply of quality cannabis products, visit us at Planet 13 Las Vegas. Planet 13 is the largest dispensary on the planet and one of the nation’s leaders in cannabis cultivation, production, and dispensaries. Our 24/7 storefront provides a range of discreet, stylish, and elegant products suited just your specific needs. Find the freshest, top-shelf quality cannabis products at the Planet 13 location nearest you today. Contact us today to learn more.